Finance
Funding Options for Different Types of Home Improvements
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Explore funding options for home improvements, from credit cards for minor projects to secured loans for major renovations, enhancing home value.
Covering the costs of home improvements can be a headache. Even if you are in a suitably strong position to qualify for a loan, knowing which option to choose is not easy.
Precisely where the input of an independent broker can prove invaluable, helping you make sense of what is on offer to find the best deal to suit your needs.
Generally speaking, making the right choice means working out what renovations will cost. After which, it becomes much easier to choose an appropriate funding solution for your project.
Here are just a few ways home improvements of different types can be funded with affordable financial products:
Interior Painting – Less Than £500
Repainting the interior of your home in its entirety is not going to cost you more than £500. You may even be able to hire a professional to get the job done for less, saving time and energy in the process.
Minor home improvements like these can be funded with a credit card at a low rate of interest. You could even apply for a new credit card and benefit from a 0% introductory rate as a new customer.
Upgrading to New Windows and Doors – Up to £5,000
Stepping up to double or triple glazing comes highly recommended in an era of unprecedented energy prices. Research has shown that boosting the energy efficiency of windows and doors at home can lead to annual energy savings of up to £175. Long-term, it is an investment in comfort and energy efficiency that can pay for itself.
In the meantime, a personal loan taken out over 2 to 5 years is a good way of funding the project. Personal loan APRs are still incredibly low, particularly for applicants with an excellent credit score.
Fitting a New Kitchen – £6,000+
This is another home improvement that can make a major contribution to your property’s market value. Often far in excess of the total project costs, adding as much as 6% to your home’s selling price.
Raising this kind of money in the interim is possible by way of an unsecured personal loan or a loan secured against your home. A short-term bridging loan could also be considered if you can afford it and if planning on selling your home shortly after the project is complete.
Loft Conversions – £10,000+
Depending on the size and configuration of your loft, converting it could cost anything from £10,000 to more than £40,000. On the plus side, adding an extra living space to your home could increase its market value by more than 10%.
A homeowner loan can be particularly useful for raising this kind of cash; this is a specialist secured loan exclusively for homeowners. One that is usually available with a more competitive APR than any comparable personal loan.
Structural Extensions – £10,000 to £50,000+
Extending a property to create additional space really is the ultimate home improvement, one that can cost anything depending on the configuration and complexity of the extension.
Secured loans or full package development finance are the preferred option for most homeowners planning major extension works. A homeowner loan could be just the thing, or perhaps an extension on your mortgage to raise the funds needed.
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The article discusses various funding options for different types of home improvement projects.
Minor improvements can be funded using credit cards, especially those with low interest or 0% introductory rates.
Major renovations can be financed through secured loans, homeowner loans, or by extending your mortgage.
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